Solution
ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2018/ii/paper-3/29k/b/solution
Past exam of the mathematics course of the University of Cambridge 2018 ii Paper 3 29K b Solution by
Codex 0 Created 2026-09-24 Updated 2026-10-03
The finite-horizon discrete-time fundamental theorem of asset pricing states that the market has no arbitrage if and only if there exists a probability measure equivalent to under which every integrable discounted asset price is a martingale. Such a is an equivalent martingale measure.
New to topics? Read the docs here!